NBN Co attempts to clear final regulatory hurdle

NBN Co is expected to release the key document that decides how Australia’s telecommunications market will run for the next 30 years within the next two weeks, according to top industry executives.

The special access undertaking (SAU) sets out the prices and access conditions NBN Co must provide for internet and phone services throughout its broadband network in the next 30 years. It was due to be approved by the Australian Competition and Consumer Commission by September this year. But after months of strong protests from the telecommunications industry, regulators told NBN Co its SAU could not be approved.

Macquarie Telecom head of regulatory affairs, Matt Healy, said the industry expected a discussion paper outlining the revised SAU within the next two weeks. His comments were echoed by other senior telco executives.

The final version would then be submitted to the ACCC for consideration by the end of September. Under the process rules the regulator can only approve or reject the document and modifications are not allowed.

“We expect it to be lodged with the commission in the next month or so," he said. “We’re expecting one more round of consultation before they lodge it and start a public consultation on it. That, subject to some refinements, would be the one that would be accepted."

Mr Healy said the industry was dissatisfied with NBN Co’s earlier efforts and “would not even call it a first draft". Companies including Telstra, SingTel-Optus and iiNet protested that the $37.4 billion would be far too expensive to access.

“NBN Co has advised us they’re working feverishly on a new version and that they’ll have another round of discussions with us before they lodge it with the commission," he said.

“They’ve been very quiet of late but to their credit it’s probably because they’ve been heads down bum up. Leading up to that we had a good set of meetings with NBN Co and the ACCC."

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A senior telco executive at a rival firm who did not wish to be named backed up Mr Healy’s sequence of events and description of NBN Co’s attitude. But he warned drastic changes to the original would be needed before it was ready for approval. “NBN Co had a lot of work to do so it’s by no means certain that there won’t be further iterations of this," the executive said.

An NBN Co spokeswoman said it was working to complete its submission over the next few weeks.